Eye-on-Retail Tipsheet 1/23/13: Club Stores Outpace; Amazon Not Collecting Tax

“Walmart Canada announces expansion plans” “Walmart Canada announced that it plans to complete at least 37 supercentre projects in the company’s next fiscal year, which runs from February 1, 2013 to January 31, 2014. The company also announced it will be expanding its distribution network to support its ongoing store growth and expansion plans. The distribution centre projects, construction of new stores, and expansion, remodelling or relocation of existing stores represents an investment of more than $450 million in the Canadian economy. These expansion plans are expected to generate more than 7,000 store, trade and construction jobs.” Read more: https://media.prnewswire.com/en/jsp/latest.jsp?resourceid=6165738&access=EH

“Wal-Mart Readies Fresh-Food Fight With Target” by Greg Quinn at Bloomberg. “Wal-Mart Stores Inc. plans to expand its fresh-food offerings to every store in Canada from about 50 percent now as it takes on grocer Loblaw Cos. and girds for Target Corp. arrival in the country this year. Wal-Mart will add food sections to stores in Canada’s Maritime provinces this year and plans to increase its food line to as many stores as possible, Shelley Broader, 48, chief executive officer and president of Wal-Mart’s Canadian unit said in an interview today at Bloomberg’s Toronto office. “The addition of fresh food through supercenters a few years ago has really not only driven our growth trajectory in Canada, but it is really meeting the needs of the consumer base that was under-served,” Broader said. “I would like to put fresh food in every facility that I can.” Read more: https://www.bloomberg.com/news/2013-01-23/wal-mart-readies-fresh-food-fight-with-target.html

“Deloitte Study: Consumer Products Industry Expects Sales in Warehouse Club Stores to Outpace Other Retail Channels” “Consumer products executives expect their highest growth to come from the warehouse club channel compared with any other retail sales channel over the next three years, including mass merchandise, grocery, and e-commerce, according to new research from Deloitte. Nine out of 10 (89 percent) of consumer package goods (CPG) executives Deloitte surveyed expect their company’s sales through the warehouse club channel to increase during that time. This channel is outpacing grocery in CPG companies’ focus, as less than half (49 percent) expect grocery sales to increase during that three-year period, while one in six (18 percent) expect sales in the grocery channel to decline.” Read more: https://media.prnewswire.com/en/jsp/latest.jsp?resourceid=6167127&access=EH

“ACE Hardware hammers zombie film shot at store” by Carla Caldwell at Atlanta Business Journal. “A short film shot by college students at a Lawrenceville ACE Hardware store has earned a spot at Sundance – but is being panned by the company and could cost an employee his job, reports Atlanta Business Chronicle broadcast partner WXIA-TV. The 9-minute film titled “When Zombies Come” beat out more than 8,000 entries for a showing at Sundance Film Festival. It was filmed as part of a Georgia State University class project. ACE says the film was shot on company property without consent and features an employee, Alex Warner, who was not given permission to participate.” Read more: https://www.bizjournals.com/atlanta/morning_call/2013/01/ace-hammers-zombie-film-shot-at-store.html

“Amazon fails to collect new Georgia tax” by Arielle Kass at Atlanta Journal Constitution. “Georgia shoppers at Amazon still aren’t paying sales tax, three weeks after the start of a state law designed to snag the money from the world’s biggest online retailer. Whether or when Amazon’s tax collection will begin is unclear. State officials are aware Amazon isn’t collecting the money, but they aren’t disclosing what they will do about it. “Our expectation is that the law would be abided by,” said Ryan Teague, executive counsel to Gov. Nathan Deal.” Read more: https://www.ajc.com/news/news/amazon-fails-to-collect-new-georgia-tax/nT4wm/

“Lowe’s Boosts Seasonal Hiring, Plans to Add Permanent Part-Timers” at Fox Business. “Lowe’s Cos. increased its temporary-worker hiring plan for the spring season from last year and said it also would bring on permanent part-time workers, adding 54,000 positions in all as its turnaround shows traction. The retailer said Tuesday it planned to hire 45,000 seasonal employees, temporary positions like cashiers and stockers that supplement its ranks during a home-improvement demand spike in spring and summer. A year earlier, the merchant aimed for more than 40,000 seasonal hires. Read more: https://www.foxbusiness.com/news/2013/01/22/lowe-boosts-seasonal-hiring-plans-to-add-permanent-part-timers/#ixzz2Io0hHPYy

“Dollar General plans further expansion” by Jaquetta White in the Tennessean via USA Today. “Dollar General Corp. plans to hire another 6,000 employees in 2013 on its way to opening more than 600 new stores across the country. The latest announcement reflects the brisk pace at which the discount retailer has grown in a half decade. Based on current projections, Dollar General will have added 2,800 stores and 30,000 employees since 2004 when its upcoming fiscal year ends in January 2014. The additions will bring the Goodlettsville, Tenn., company, which already has more locations than any other retailer in America, to 11,000 stores by the end of the year.” Read more: https://www.usatoday.com/story/money/business/2013/01/22/dollar-general-plans-expansion/1856877/

“What happens when Walmart comes to Nicaragua?” by Hope Michelson at Oxford University Press. “When a supermarket chain like Walmart moves into a developing country it requires a steady supply of fresh fruits and vegetables largely sourced domestically. In developing countries where the majority of the poor rely on agriculture for their livelihood, this means that poor farmers are increasingly selling produce to and contracting directly with large corporations. In precisely this way, Walmart has begun to transform the domestic agricultural markets in Nicaragua over the past decade. This profound change has been met with both excitement and trepidation by governments and development organizations because the likely effects on poverty and inequality are not known.” Read more: https://blog.oup.com/2013/01/what-happens-when-walmart-comes-to-nicaragua/

“Delhaize Group 2012 revenues and preliminary results” in International Supermarket News.

Full Year 2012 Results (at identical exchange rates)

» Group revenue growth of 2.9%; organic revenue growth of 2.1%

» Preliminary unaudited underlying operating profit decline of approximately 17.5% compared to 2011

» Free cash flow generation in excess of €600 million

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